Monday, October 26, 2009

FCPO traded lower today despite encouraging export figure released by 2 export cargo surveyors. At closed FCPO down 20 points ended the day at 2218 with a 30 point range market. The drop in price is mainly due to a weaker soy oil price and crude oil development that currently trading in a correction phase after some severe surged in price. Forming a black candle with a bottom tail at above mid Bollinger Band = Market is still favour the upside. Bollinger band width continue widen = there are more upside room for market to move higher. However, MACD Histrogram stayed almost unchanged dropped by a fraction resulted a draw game between buyer and seller. Overall, FCPO still have the potential to move up higher. When to buy : buy on dip or break out with larger cut loss and profit target.
When to sell : sell only on break down with volume confirmation with quick cut loss and profit target.

FKLI closed the day down 4.5 points at 1261 after the released of the long awaited 2010 budget last Friday and also due to the fact that there is no more exciting catalyst news in the near futures at least not until MAXIS IPO. With today doji bar candle trading above mid Bollinger band = market has yet to change trend. Bollinger band width stayed narrowing = market is trading side way biased to some downward correction. MACD Histrogram continue to slide lower near to zero level = seller coming into the market. Overall, market will continue to be in correction phase. Support level stands at 1255 level. When to buy : Buy on dip or at support level with quick cut loss and profit.
When to sell : Sell on strenght and break down with quick cut loss and profit.

FKLI traded 4.5 point lower to closed at 1261 perhaps reacting to a no big surprise budget announcement. Lots of comments heard on the street with some negative feedback on the real property gain tax and also in the hot topics will be the cancellation of credit cards due to the RM50 tax. Coming back to the hourly chart, FKLI slide below the mid Bollinger band = Negative market sentiment. Bollinger band width also just getting started to expand = potential downward movement. MACD Histrogram continue to drop in the negaticve zone = seller take charge of the current market. Overall market is still in correction phase after an exhausted climb.

Despite better than expected export figure data that up 16% by ITS, crude palm oil futures traded lower in a tight 15 points range to closed at 2225 with merely 1591 contracts changed hand. This may due to the sluggish price development in soy oil futures that still traded lower compare to last Friday. Looking at the hourly chart, price still trading above mid Bollinger band = market still sticking toward an upward direction. Bollinger band width narrowing = side way range bound market. MACD Histrogram fall breached below to negative territory = selling pressure exist in the market. Overall FCPO is trading in a sideway market.

Media Prima weekly chart looks strong with all indicators sending bullish uptrend signal after breaking the 1.60 resistant level that now turned into support level and now marching toward the 2.00 target resistant level. Should the MACD Histrogram continue to rise, it is likely for MEDIA to reach the 2.00 level but if the MACD Histrogram started to form a rounding top, that would be an alert not to hold.

Looking at soy oil futures chart, it is trading up 0.41 higher at 38.35 after 2 days downward correction. Trader will need to watch out for the development in the MACD Histrogram because the rounding down process has yet to end and continue to fall further.

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